Suez Canal monthly losses reach $550m

Reuters/ Suez Canal Authority

• Red Sea crisis affects trade
• Revenues down 40% since January

Egyptian prime minister Mostafa Madbouly has said the Suez Canal is reporting losses of up to $550 million per month due to ongoing regional tensions.

In January Suez Canal Authority chairman Osama Rabie said dollar revenues from the Suez Canal were down 40 percent since the start of the year after attacks forced global shippers to opt for longer but safer routes.

While no breakdown was given on the canal’s revenue contribution, the Suez Canal Economic Zone’s revenue hit EGP8.5 billion in 2023-24, surging 205 percent from EGP2.8 billion in 2016-2017, Egypt Daily News reported, quoting SCZone chairman Walid Gamal El-Din’s meeting with Madbouly.

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Chinese investments in the economic zone have reached nearly $3 billion through 155 industrial, logistical and service companies.

The economic zone has also signed 29 memorandums of understanding with various international companies specialising in green hydrogen, which could draw investments worth $133 billion.

• Suez Canal revenues and traffic fell in May
• Egypt to float Suez Canal subsidiary next year

This month Danish shipping major Maersk CEO Vincent Clerc said disruption in the Red Sea is expected to stretch into the third quarter of 2024, making the situation challenging for carriers and businesses.

In May Maersk said that the Red Sea disruption had resulted in a 15 to 20 percent industry-wide capacity loss on the Asia to North Europe and Mediterranean routes in the second quarter of 2024.